Delaware Passes Ridesharing Regulations

August 12, 2016

Delaware Governor Jack Markell has signed legislation that establishes insurance requirements for transportation network companies and their drivers, according to the Property Casualty Insurers Association of America (PCI).

Senate Bill 262 aims to protect the public by establishing a solid framework for safe transportation in Delaware through ridesharing programs like Uber and Lyft.

Oyango Snell, state government relations counsel for PCI, said in a company release that this legislation is necessary to protect drivers and passengers of ridesharing cos. if an accident were to occur. This is because many rideshare drivers use their own vehicles to carry passengers, and their personal auto policy will not suffice if they are injured or if the vehicle is damaged in an accident. Personal auto insurance policies contain a specific exclusion barring coverage if the car is used for commercial activities.

“These exclusions have been upheld in the courts for decades,” Snell stated in the release. “Even if these ridesharing cos. have insurance, it’s important to have clarity regarding how and when it will be triggered if an incident were to occur which is why this piece of legislation is so important.”

Source: PCI

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